Farm Credit Administration:
Compliance with the Inflation Adjustment Act
GAO-02-1084R: Published: Sep 24, 2002. Publicly Released: Sep 24, 2002.
GAO initiated a governmentwide review of the implementation of the Federal Civil Penalties Inflation Adjustment Act of 1990. The act requires each federal agency to issue a regulation adjusting its covered maximum civil monetary penalties for inflation by October 23, 1996, and requires each agency to make necessary adjustments at least once every 4 years thereafter. During the review, GAO determined that the Farm Credit Administration had adjusted its civil penalties in a manner inconsistent with the requirements of the statute.
Recommendation for Executive Action
Status: Closed - Implemented
Comments: The Farm Credit Administration published a final rule on November 14, 2002 (67 FR 68931) revising its penalty amounts in a manner consistent with the requirements of the Inflation Adjustment Act. In the rule, FCA specifically said it was doing so pursuant to GAO's recommendation.
Recommendation: Although there are some advantages to rounding on the basis of the size of the increase rather than the size of the increase rather than the size of the penalty, such a determination does not comport with the plain language of the statute. Therefore, the Farm Credit Administration Board should initiate a regulatory action to adjust the agency's civil penalties in a manner consistent with the requirements of the Inflation Adjustment Act.
Agency Affected: Farm Credit Administration